Monday, October 22, 2012

STD Blue Week (October 22 - 26)

STD Blue Days are usually choppy and tricky to trade. Statistically look back, STD Blue Days and STD Blue Weeks are M-shaped or W-shaped, and the loss-trades are above average. STD Red and Green days and weeks are much better for trends to work.

Monday - Tuesday, October 22-23, may turn out to be similar or inverse to Thursday - Friday of last week. Assuming there was no inversion on the STD-red day (Sunday, Oct 21), a ST-high on Monday, followed by another swing down into late Tuesday is likely. Also consider with past Blue Week patterns, especially 4 weeks back, 4 lunar months back, and 1 lunar year back.

As outlined HERE, the ITD #b Low is scheduled to develop around Oct 21-23, and should be followed by a rally into the ITD #6 High around Oct 29 = Full Moon.  

This forecast also matches Mike Korrell's latest projection (HERE), but contradicts the view of Francis Bussiere: ST high on Oct 24, down into Full Moon (HERE).

The McClellan Oscillators and Summation Indices for NYSE and Nasdaq both point to lower prices.

The $TRIN (NYSE - Short-Term trading Arms Index) had reached the upper Bollinger Band. This alone may suggest a bounce or reversal in equities. However, MACD and Stochastic have just turned up, and support the idea of a rising $TRIN, which is the continuation of the down-trend in stocks.